U.S. P&C insurers to handle losses from severe winter weather: A.M. Best

Despite severe winter weather causing heavy property damage and business interruption losses in the United States over the past two months, insurers there will be likely to handle losses, according to a special report from A.M. Best.

From early January to mid-February, much of the U.S. was struck by severe winter weather, including regions that weren’t well-prepared for such events, according to the report.

Severe weather in January caused an estimated $1.4 billion in insured losses in the U.S., according to Aon Benfield, A.M. Best noted in its report.

“A.M. Best expects national insurers and reinsurers to have no difficulty in bearing these losses,” the report says. “As often happens in weather-related events, the greatest proportional impact may be on those insurers most concentrated by geography or line of business where the weather took its greatest toll.

“These losses have come early in the year, and they could add up to more significant operating losses when combined with additional events that may occur in the months ahead.”

Overall, the firm said its doesn’t expect to make significant rating changes.